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New financial system to challenge US Dollar proposed at BRICS summit

BRICS financial system news

At the upcoming BRICS summit Russia plans to introduce a new international financial system designed to bypass reliance on the US dollar and Western-controlled institutions, according to reports from Reuters.

The proposed system, based on blockchain technology and digital tokens backed by national currencies, aims to offer a secure and efficient alternative for international transactions between BRICS nations.

The platform would allow member countries, including Brazil, India, China, and South Africa, to settle payments without the involvement of the US dollar, with Moscow positioning the system as resistant to Western sanctions.

The plan also includes the creation of a ‘BRICS Clear’ platform for settling trade in securities and encourages the development of a common rating methodology among BRICS nations.

Russian Finance Minister Anton Siluanov previously announced the need for alternatives to the current Western-dominated financial system, citing political pressure and sanctions as reasons for change.

While specific details of the new system remain unclear, Russia has been actively reducing its reliance on the dollar in international transactions, especially with key trading partner China.

As the BRICS summit approaches, Moscow hopes to strengthen financial cooperation between member nations, with over 30 countries, including Türkiye, reportedly interested in joining the bloc.

Image credit: Niconor Brown

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3 COMMENTS

    • You could start with bartering. And paying say the difference in value in cash or gold.
      I think this is the spirit of BRICS. Primarily exchange of goods between countries and once a half/ or whole year settling the bill in cash or gold or whatever it is agreed upon.
      System that has been working for millenia before men had money/ gold or silver.
      I have been bartering all my life and lived very well on a small budget.
      It has a huge advantage : when you barter, you don t pay taxes to your own government.
      And you can barter anything, for ex 1 hour babysitting for 1 kg potatoes

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